Archive · 2 Jun 2025
Eternal Ltd. Faces $840M Outflow Due to Index Cuts
Imagine a big company called Eternal Ltd.
that's part of some important investment lists.
Because of changes, these lists are going to reduce how much of Eternal Ltd.
they include.
This means that investors who use these lists might have to sell off a lot of shares, like $840 million worth!
The company's foreign ownership limit was recently lowered, which triggered these adjustments.
The FTSE Russell is making their changes starting May 27.
Experts believe that this action could lead to substantial selling of the company’s stock.
Eternal Ltd. (formerly Zomato) faces potential passive outflows.
The total outflows could reach $840 million.
The adjustments follow a cut in the company’s foreign ownership limit (FOL).
FTSE Russell's changes will begin on May 27.
MSCI's review in May may also trigger outflows.
- Who
- Eternal Ltd. (formerly Zomato) is the affected company.
- What
- Eternal Ltd. may experience $840 million in passive outflows due to index weight reductions by FTSE Russell and MSCI.
- When
- FTSE's changes take effect from May 27; MSCI's review is scheduled for May.
- Where
- The article does not specify a location.
- Why
- The changes are a result of a reduced foreign ownership limit (FOL) for Eternal Ltd.
- Company Affected
- Eternal Ltd.
- Total Potential Outflows
- $840 million
- FTSE Outflows (Estimated)
- $380 million
- MSCI Outflows (Estimated)
- $460 million
- FTSE Changes Effective
- May 27
- Eternal's Foreign Ownership Limit (FOL)
- 49.5%
- Index Providers
- FTSE Russell and MSCI